Tax Benefits of Charitable Giving

Christmas is the time of year to be a little selfless and dig deep for worthwhile charitable causes. Self-assessment tax payers can also benefit as charitable giving reduces their bill

Emma Wall 8 December, 2014 | 1:16PM

This article is part of Morningstar’s Guide to Financial Planning, your handbook for making the most of your tax-free investing opportunities, reducing your annual – and lifetime – tax bill while keeping HMRC onside.

Listen up – now is the time to make gifts to charity. Not just because of Christmas appeals, but because of tax deadlines too. It may seem a rather utilitarian approach – but if you empty your pockets for well-deserving trusts now you will reap the benefits too. When making a donation to charity, fill out the Gift Aid form to boost the amount of cash the charity receives and reduce your income tax bill.

Richard Citron of BDO says: “If you have a favourite charity, consider making Gift Aid donations before January 31 to provide an early benefit to the charity and elect for the donation to be treated as made in 2013/14 to accelerate tax relief.”

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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